The video below describes how Chapter 13 works.  This is just the starting point to what Chapter 13 can accomplish for those with financial issues. David Siegel: Okay, so what happens in a Chapter 13? How does it work? Jesse Barrientes: Well, in a Chapter 13, what happens is all of your assets kind of just go in one place. That’s what you call your estate. And depending upon what those assets are, the bankruptcy trustee kind of makes or pays off the secured and unsecured. With the Chapter 13, you have to be able to pay off 100% of your secured debt and as little as 10% all the way up to 100% of your unsecured debt within 36 or 60 months. So three or five years, that’s what they call + Click Here For Read More

The transcription below is from the Chapter 13 video explanation the general nature of what Chapter 13 bankruptcy is all about. David Siegel: You know, whether things are rolling in this country or whether they’re going downhill, there’s always a need for the Chapter 13, the reorganization, to find a way to pay back and get a fresh start to a certain extent. Let’s jump right in. What is Chapter 13 bankruptcy? Jesse Barrientes: Chapter 13 is a consolidation essentially is what it is. I also want to mention, there are a lot of companies that provide consolidation services, so-called. And my experience with them hasn’t been so good only because Chapter 13, right, is sanctioned by federal + Click Here For Read More

Current Chapter 13 Bankruptcy Client I have a client that is currently in a chapter 13 bankruptcy case, but is struggling to make her plan payments. The trustee has filed a motion to dismiss the case for failure to make timely payments. My client is approximately $1500 behind even though her trustee payments are being deducted out of her pay. This is primarily due to the fact that she was in between jobs and during that lapse in employment, she did not pay the entire plan payment on her own. Faced with the dilemma of the trustee's motion to dismiss, the client came to see me with regard to her options.  Option One One of the options of course is to get caught up with the trustee and save + Click Here For Read More

Bankruptcy Trustees If you live in Chicago and file a chapter 13 bankruptcy, the trustee appointed to your case is either going to be Marilyn Marshall or Tom Vaughn. Although each trustee follows the same bankruptcy laws and processes, each has a different standard or structure when it comes to confirming cases. In general, cases are more likely to be confirmed if you have trustee Vaughn. This is because the trustee is a little more forgiving when it comes to making amendments. The trustee understands that the debtor and the debtor’s attorney are doing everything they can to get a case confirmed. The debtor wants to start repaying his creditors. The attorney wants to get the case confirmed + Click Here For Read More

When It Makes Sense There are circumstances where it makes perfect sense to convert a chapter 13 to chapter 7. One of the reasons why someone would want to convert their bankruptcy case is due to an inability to make chapter 13 payments. This can happen when someone loses their job, gets a divorce, becomes ill or injured, or simply does not wish to retain the property that was being reorganized in a chapter 13. Let's look at an example of a homeowner who's trying desperately to save a home from being foreclosed upon. The homeowner files a chapter 13, begins to make monthly payments to the trustee and begins to make the regularly scheduled mortgage payment once again. Well at some point + Click Here For Read More

The Best Way To Cure Mortgage Arrears There is only one way that you can cure or catch up on mortgage arrearages with the help of the bankruptcy system. That way involves the filing of a chapter 13 bankruptcy case. Chapter 13 bankruptcy is a unique way to save a home that's either in foreclosure, heading into foreclosure, or on the eve of a Sheriff sale. Filing a chapter 13 will allow you to make the regular mortgage payment directly to the lender as well as a separate payment known as a trustee payment which will cure your mortgage arrearage over a three to five-year period.  How It Works Here is how chapter 13 works. A petition under chapter 13 is filed with the clerk of the United + Click Here For Read More

 Chapter 13 Bankruptcy Case Tip 1 There are many tips that I can give you which will help you have a successful chapter 13 case or at least the most success possible under your circumstances. The biggest tip that I can give you however, is to go on payroll control for your chapter 13 trustee payments. Payroll control is where the amount required for your chapter 13 gets deducted directly out of your pay. This means that you do not have the ability to make the payment on your own. You are basically giving up a certain amount of control whereby your chapter 13 plan payment is taken directly out of your pay and transferred over to your chapter 13 trustee. Studies have found to an + Click Here For Read More

When Chapter 13 Bankruptcy Is Used Chapter 13 is a reorganization under the United States Bankruptcy Code.  Chapter 13 allows you to repay debt over a three to five-year period.  It’s most commonly used to save a home that’s been in foreclosure or to save a vehicle that’s been repossessed or to stop collection activity on non-dischargeable debt such as parking tickets, child support, tollway violations, IRS debt and more.  Debtor Has Income To Fund Plan Chapter 13 bankruptcy works the best when someone has the income to pay where they didn’t have the income before.  For example, if someone was off of work due to an illness, and injury and all of a sudden got back to work and now has the + Click Here For Read More

Filing chapter 13 bankruptcy is not a one-shot deal. You do have the ability to file another chapter 13 bankruptcy case should your first case fail states Chapter 13 bankruptcy attorney David Siegel. No one sets out to fail in bankruptcy. Debtor's and their counsel wish to file a perfect chapter 13 petition and to have the debtor make all of the required payments under their repayment plan. Unfortunately, life throws different obstacles into the mix. One could lose a job halfway through a bankruptcy case under chapter 13. One can become ill and miss some much needed hours at work. One could get a divorce and lose that dual income that they had at the start of the chapter 13 case. Interest + Click Here For Read More

If you are a cosigner on the debt, then you and the other debtor are technically joint and severally liable for that debt.  One common form of debt that’s jointly owned is that for a vehicle.  If somebody else filed a Chapter 13 bankruptcy on it vehicle that you cosign, you may be protected under that persons Chapter 13 bankruptcy provided they pay the debt in full 100%.  If, on the other hand, they decide to pay less than 100%, then the creditor has the ability to bring a Motion to Modify the Stay and come after you, the non-filing co-debtor for the difference. What we usually see in these types of cases is the debtor filing a 100% Chapter 13 to protect that co-debtor.  But please keep + Click Here For Read More